Wednesday 3rd of March 2010
The average owed by every UK adult is £30,306 when mortgages are included, according to the latest Credit Action report, a figure which an individual voluntary arrangement (IVA) could help with.
According to the study, each adult has borrowed an average £4,667 via retail finance and motor deals, credit cards, overdrafts and personal loans.
While an IVA cannot clear mortgages and overdrafts, it can tackle credit card and personal loan balances.
These unsecured debts can be merged together with an IVA. By making such repayments more affordable, Britons may be able to better manage their mortgages and ensure they slowly lift themselves out of their overdrafts.
Statistics revealed by Credit Action also show that the £30,306 owed represents 129 per cent of average earnings.
As such, people who find their household income is no longer enough to stay afloat may want to start asking questions on IVAs to see if this type of repayment plan can pull them out of debt.
By Hayley Jones
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs can stop you succumbing to paying the minimum amount only
